Standard Chartered launches Bitcoin, Ether trading in UAE
In brief
- Standard Chartered launched spot Bitcoin and Ether trading for institutional clients in the UAE, becoming the first G-SIB to do so.
- Hyperscale Data shut down Bitcoin mining in Michigan to accommodate a 20-megawatt AI customer worth up to $1.2 billion over 10 years.
- New Jersey filed a Supreme Court petition challenging state authority to regulate sports betting through prediction markets.
Banking and Digital Assets
Standard Chartered launched the spot trading service through its Dubai International Financial Centre-regulated entity. The bank's move into institutional crypto trading follows a banking agreement with CoinMENA struck in June, which enabled the crypto exchange to access fiat on- and off-ramp services through Standard Chartered's infrastructure.
The expansion signals growing mainstream adoption of digital assets in Gulf financial markets. Standard Chartered isn't just offering custody anymore—it's now a direct counterparty to institutional trades in Bitcoin and Ether.
Mining to AI: Hyperscale's Pivot
Hyperscale Data ended all Bitcoin mining operations at its Michigan facility to make room for an artificial intelligence data center customer. The AI customer contracted for 20 megawatts of computing capacity under a 10-year master services agreement with two optional five-year extensions.
The financial upside is substantial. The agreement may generate more than $1.2 billion over the maximum 20-year term. An additional 32-megawatt option could lift potential revenue above $3 billion.
The market reacted sharply. Hyperscale Data shares fell 17% to a split-adjusted record low on the day the company announced the mining shutdown. Investors weighed the long-term AI revenue against the loss of immediate mining income. Hyperscale said it intends to sell the associated mining equipment.
Prediction Markets Face Regulatory Crossroads
New Jersey asked the US Supreme Court to decide whether states can regulate sports betting offered through prediction markets such as Kalshi. Attorney General Jennifer Davenport and state gaming officials filed a petition Wednesday seeking to overturn an April appeals court ruling that favored Kalshi.
The Third Circuit had found that federal commodities law likely gives the Commodity Futures Trading Commission exclusive authority over Kalshi's sports event contracts. New Jersey disagrees. The state argues that sports contracts are effectively wagers and should remain subject to state licensing and consumer protection rules.
"Kalshi maintains that its contracts are federally regulated financial products and that the company cannot operate under 50 separate regulatory systems." — Kalshi
The dispute hinges on whether prediction markets are financial instruments or gambling products—a question with major implications for the crypto and fintech sectors if the Supreme Court takes the case.
Frequently asked questions
Why did Hyperscale Data shut down Bitcoin mining?
Hyperscale ended mining at its Michigan facility to prepare the site for an AI data center customer. The AI agreement is worth more than $1.2 billion over 10 years with potential extensions, and an additional 32-megawatt option could exceed $3 billion in revenue—substantially more lucrative than mining operations.
Is Standard Chartered the first bank to trade Bitcoin and Ether?
Standard Chartered is the first Global Systemically Important Bank (G-SIB) to offer institutional digital asset trading in the UAE region. It launched spot Bitcoin and Ether trading through its DIFC-regulated entity, building on custody services it established in September 2024.
What's the dispute between New Jersey and Kalshi about?
New Jersey argues that sports contracts offered by prediction markets like Kalshi are effectively wagers and should be regulated by states. Kalshi counters that its contracts are federally regulated financial products under CFTC authority and can't operate under 50 separate state systems. The Supreme Court may decide the jurisdictional question.
